Maurice Tutor
$15/per page/Negotiable
The income statement, balance sheet, and additional information for Virtual Gaming Systems are provided.
| VIRTUAL GAMING SYSTEMS Income Statement For the year ended December 31, 2012 |
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| Â Â Revenues | Â | $ | 2,700,000 |
| Â Â Gain on sale of land | Â | Â | 2,200Â Â |
| Â | Â | Â | Â |
| Â Â Â Â Â Â Â Â Total revenues | Â | Â | 2,702,200Â Â |
| Â Â Expenses: | Â | Â | Â |
| Â Â Â Â Â Â Â Cost of goods sold | $ 1,610,000Â Â | Â | Â |
| Â Â Â Â Â Â Â Operating expenses | 607,000Â Â | Â | Â |
| Â Â Â Â Â Â Â Depreciation expense | 23,700Â Â | Â | Â |
| Â Â Â Â Â Â Â Interest expense | 24,500 | Â | Â |
| Â Â Â Â Â Â Â Income tax expense | 70,100 | Â | Â |
| Â | Â | Â | Â |
| Â Â Â Â Â Â Â Â Â Â Total expenses | Â | Â | 2,335,300 |
| Â | Â | Â | Â |
| Â Â Net income | Â | $ | 366,900 |
| Â | Â | Â | Â |
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| VIRTUAL GAMING SYSTEMS Balance Sheet December 31 |
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| Â | 2012 | 2011 |
| Â Â Assets | Â | Â |
| Â Â Current assets: | Â | Â |
| Â Â Â Â Â Â Â Cash | $ 371,900 Â Â | $ 146,000 Â Â |
| Â Â Â Â Â Â Â Accounts receivable | 77,000 Â Â | 92,000 Â Â |
| Â Â Â Â Â Â Â Inventory | 151,000 Â Â | 142,000 Â Â |
| Â Â Â Â Â Â Â Prepaid rent | 4,900 Â Â | 6,300 Â Â |
| Â Â Long-term assets: | Â | Â |
| Â Â Â Â Â Â Â Investments | 189,000 Â Â | 130,000 Â Â |
| Â Â Â Â Â Â Â Land | 214,000 Â Â | 260,000 Â Â |
| Â Â Â Â Â Â Â Equipment | 234,000 Â Â | 213,000 Â Â |
| Â Â Â Â Â Â Â Accumulated depreciation | (133,700) | (110,000) |
| Â | Â | Â |
| Â Â Â Â Â Â Â Â Â Â Total assets | $ 1,108,100 Â Â | $ 879,300 Â Â |
| Â | Â | Â |
| Â Â Liabilities and Stockholders' Equity | Â | Â |
| Â Â Current liabilities: | Â | Â |
| Â Â Â Â Â Â Â Accounts payable | $ Â Â 34,000 Â Â | $ Â Â 95,000 Â Â |
| Â Â Â Â Â Â Â Interest payable | 4,900 Â Â | 3,000 Â Â |
| Â Â Â Â Â Â Â Income tax payable | 22,000 Â Â | 26,000 Â Â |
| Â Â Long-term liabilities: | Â | Â |
| Â Â Â Â Â Â Â Notes payable | 251,000 Â Â | 230,000 Â Â |
| Â Â Stockholders' equity: | Â | Â |
| Â Â Â Â Â Â Â Common stock | 264,000 Â Â | 210,000 Â Â |
| Â Â Â Â Â Â Â Retained earnings | 532,200 Â Â | 315,300 Â Â |
| Â | Â | Â |
| Â Â Â Â Â Â Â Â Â Total liabilities and stockholders' equity | $ 1,108,100 Â Â | $ 879,300 Â Â |
| Â | Â | Â |
| Â | ||
| Additional Information for 2012: | |
| 1. | Purchase additional investment in stocks for $59,000. |
| 2. | Sell land costing $46,000 for $48,200, resulting in a $2,200 gain on sale of land. |
| 3. |
Purchase $21,000 in equipment by borrowing $21,000 with a note payable due in three years. No cash is exchanged in the transaction. |
| 4. | Declare and pay a cash dividend of $150,000. |
| 5. | Issue common stock for $54,000. |
| Required: |
|
Prepare the statement of cash flows for Virtual Gaming Systems using the direct method. Disclose any noncash transactions in an accompanying note. (Amounts to be deducted should be indicated with minus sign. Omit the "$" sign in your response.) |
| VIRTUAL GAMING SYSTEMS Statement of Cash Flows For the year ended December 31, 2012 |
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| Â Â Cash Flows from Operating Activities | Â | Â |
| Â Â Â Â Â (Click to select)Cash paid for income taxesCash paid for interestCash paid for operating expensesCash received from customersSale of landCash paid to employeesCash paid to suppliers | $Â Â Â | Â |
| Â Â Â Â Â (Click to select)Cash paid for operating expensesCash paid for income taxesCash paid for interestSale of landCash paid to employeesCash received from customersCash paid to suppliers | Â Â | Â |
| Â Â Â Â Â (Click to select)Cash paid for interestCash paid to suppliersSale of landCash paid for income taxesCash paid for operating expensesCash received from customersCash paid to employees | Â Â | Â |
| Â Â Â Â Â (Click to select)Cash paid to employeesCash paid to suppliersSale of landCash received from customersCash paid for income taxesCash paid for interestCash paid for operating expenses | Â Â | Â |
| Â Â Â Â Â (Click to select)Cash paid for interestCash paid to suppliersSale of landCash received from customersCash paid for operating expensesCash paid for income taxesCash paid to employees | Â Â | Â |
| Â | Â | Â |
| Â Â Â Â Â Â Â Â Net cash flows from operating activities | Â | $Â Â Â |
| Â Â Cash Flows from Investing Activities | Â | Â |
| Â Â Â Â Â (Click to select)Purchase investment in bondsPurchase investment in stockCash paid for income taxesCash received from customersCash paid for interestSale of landCash paid to suppliers | Â Â | Â |
| Â Â Â Â Â (Click to select)Cash paid for interestCash received from customersPurchase investment in stockCash paid for income taxesSale of landPurchase investment in bondsCash paid to suppliers | Â Â | Â |
| Â | Â | Â |
| Â Â Â Â Â Â Â Â Net cash flows from investing activities | Â | Â Â |
| Â Â Cash Flows from Financing Activities | Â | Â |
| Â Â Â Â Â (Click to select)Issue common stockCash paid for operating expensesCash paid for interest Purchase investment in bondsPayment of cash dividendsPurchase investment in stockPurchase of equipment | Â Â | Â |
| Â Â Â Â Â (Click to select)Cash paid for interest Cash paid for operating expensesPurchase investment in stockPayment of cash dividendsPurchase of equipmentIssue common stockPurchase investment in bonds | Â Â | Â |
| Â | Â | Â |
| Â Â Â Â Â Â Â Â Net cash flows from financing activities | Â | Â Â |
| Â | Â | Â |
| Â Â (Click to select)Net increase in cashNet decrease in cash | Â | Â Â |
| Â Â (Click to select)Cash at the beginning of the periodCash at the end of the period | Â | Â Â |
| Â | Â | Â |
| Â Â (Click to select)Cash at the end of the periodCash at the beginning of the period | Â | $Â Â Â |
| Â | Â | Â |
| Â Â Noncash Activities | Â | Â |
| Â Â Â Â Â (Click to select)Cash paid for interestCash paid for income taxesPurchase equipment issuing a note payableCash received from customersPurchase investment in bondsCash paid for operating expensesCash paid to suppliers | ||
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